Head to Head Comparison: Otis Worldwide (NYSE:OTIS) and RBC Bearings (NYSE:RBC)

RBC Bearings (NYSE:RBC) and Otis Worldwide (NYSE:OTIS) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares RBC Bearings and Otis Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBC Bearings	$1.64 billion	10.69	$246.20 million	$8.50	65.07
Otis Worldwide	$14.43 billion	2.40	$1.38 billion	$3.50	25.47

Otis Worldwide has higher revenue and earnings than RBC Bearings. Otis Worldwide is trading at a lower price-to-earnings ratio than RBC Bearings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RBC Bearings and Otis Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBC Bearings	15.00%	10.86%	6.93%
Otis Worldwide	9.59%	-30.42%	14.84%

Analyst Recommendations

This is a summary of current ratings for RBC Bearings and Otis Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBC Bearings	0	1	6	1	3.00
Otis Worldwide	1	6	3	0	2.20

RBC Bearings currently has a consensus target price of $574.67, suggesting a potential upside of 3.89%. Otis Worldwide has a consensus target price of $101.44, suggesting a potential upside of 13.79%. Given Otis Worldwide’s higher probable upside, analysts clearly believe Otis Worldwide is more favorable than RBC Bearings.

Volatility and Risk

RBC Bearings has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. 1.9% of RBC Bearings shares are owned by company insiders. Comparatively, 0.2% of Otis Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

RBC Bearings beats Otis Worldwide on 10 of the 15 factors compared between the two stocks.

About RBC Bearings

RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company's power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, material handling, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.